Yet another electric vehicle (EV) company has fallen on hard times.
California-based Rivian Automotive Inc. has had a tough week after announcing plans to cut 10 percent of its workforce and lower production targets amid a significant decline in demand for such vehicles.
The news also sent its stock plummeting by 25 percent on Thursday, marking the worst day of trading in the company’s history.
“Our business is not immune to existing economic and geopolitical uncertainties, most notably the impact of historically high interest rates, which has negatively impacted demand,” Rivian CEO RJ Scaringe said on an earnings call on Wednesday.
The Los Angeles Times reported:
Rivian’s trucks and sport utility vehicles certainly command attention — the sleek design and outdoorsy features got investors, analysts and the public excited about its potential. The company, which counts Amazon…
